REAP Principle 38: Sell the Unit Before You Renovate It
by: Gualter AmareloPublished on: 22/07/2026Principle 38 says sell before you build. How real estate operators pre-sell a unit, test demand with a deposit, and stop paying for guesswork. Here is the test.
sell before you buildREAP principle 38pre-sell a rental unitpre-leasing renovationcommitted demandknow your exit before your entryreal estate operatorreturn on equityROE calculationdead equitytrapped equitycapital assignmentfour tiers of capitalseller financingthree family propertycontractor termsrenovation financingsecurity deposittenant demandsunk cost fallacy
